We can advise you about all the available debt solutions and help you decide which, if any, is right for you. Some solutions need to be set up by a specialist company. Where that is the case, we may pass you to another company within our group. We’ll only do this with your agreement.

If you decide to go ahead with any debt solution, you have the right to cancel the agreement within the first 14 days. With some solutions, you can cancel up to the point the agreement is formally accepted. If you cancel within this time, any fees you’ve already paid will be refunded.

Any debt solution that involves paying less than originally agreed will affect your credit rating for at least six years. We’ll go through all the pros and cons of each solution before you sign up for anything.

Our debt advice is free. Some debt solutions are free too. For others, there are fees

We don’t charge a fee for debt management plans.

If you opt for an individual voluntary arrangement (IVA), you’ll need a qualified insolvency expert to set it up. With your agreement, we can pass you over to another company in our group who can help. They will only charge you fees once your IVA has been accepted by your creditors. Fees are paid out of – not on top of – your regular affordable monthly payments. Once your IVA has been accepted, the fees you pay will be:

1. a nominee fee
2. a supervisor fee 
3. expenses 

Nominee fee

This fee covers the professional costs and charges for arranging your IVA including:

· preparing your IVA proposal – this sets out the proposed terms of your IVA and gives your creditors a detailed snapshot of your finances

· organising the creditors’ meeting where creditors can ask for changes to the terms of your IVA

Your creditors decide when the nominee fee is taken. They usually ask us to either:

· take the nominee fee before they start receiving payments towards your debts; or

· start taking the nominee fee from your third payment (they agree to accept smaller payments towards your debt until the nominee fee has been paid in full)

Whichever option they choose, your regular monthly payment will stay the same.

Supervisor fee

The supervisor fee covers the costs of running your IVA. Typically, this fee is 15–18% of any money divided among your creditors. Money that goes to your creditors while you’re in an IVA includes:

· your regular monthly IVA payment

· any assets (e.g. the equity in your property, money from successful PPI mis-selling claims)

· windfalls (e.g. an inheritance)

Your creditors set the percentage or amount that can be charged as a supervisor fee.

Costs

You will also cover other costs that are directly related to the running of your IVA (such as postage, insurance etc).

The total fees you’ll pay will be clearly set out in your IVA proposal. These fees must be approved, and may be changed before your proposal is accepted, by your creditors.

Total fee

The qualified insolvency experts at our sister company, Freeman Jones, can set up an IVA for you. They usually charge a fixed fee of £3,650 to cover the nominee fee, supervisor fee and costs. This is the standard fee for an IVA across the industry. Your creditors have to approve this fee and may request a change before they agree to your IVA.

If your circumstances improve

If your circumstances improve during your IVA, the most you will pay is:

· your original debt

· any interest creditors would have charged if you hadn’t entered an IVA

· the fees agreed at the time your IVA was approved by your creditors

England and Wales

The administration fee to apply for bankruptcy in England and Wales is £680. You pay this to the Insolvency Service at gov.uk. To apply for bankruptcy, you will need to:

· complete an online application

· submit your application to the Insolvency Service

· wait for an adjudicator to make a decision

Northern Ireland

In Northern Ireland, you apply to the High Court for bankruptcy. Your local Citizens Advice can help with this.

There are three fees to pay when you take your petition to the court: 1. A £525 administration fee 2. A court fee of £115 (this may be waived for some. The court staff can tell you if you qualify) 3. A solicitor fee of about £7 for a statement of affairs

You can only apply for a debt relief order (DRO) through an approved company. We are an approved company and don’t charge for our services. You pay an administration fee of £90 to the Insolvency Service when you submit your application.